During the national elections which brought U.S. President Jimmy Carter into office, Steinberg worked on the presidential campaign of the Carter-Mondale ticket.
According to The Wall Street Journal, Steinberg, along with Daniel C. Kurtzer and Dennis Ross, were among the principal authors of Barack Obama’s address on the Middle East to AIPAC in June 2008, which was viewed as the Democratic Party nominee’s most expansive on international affairs. He was mentioned as being "at the top" of Obama's list of candidates for the post of National Security Advisor, but Andrea Mitchell reported on November 24, 2008 that Hillary Clinton would appoint Steinberg United States Deputy Secretary of State. On December 23, 2008, Steinberg himself confirmed the appointment in a letter addressed to students and faculty at the Johnson school. As Deputy Secretary of State and principal Deputy to US Secretary of State Hillary Clinton, Steinberg notably coined the phrase "strategic reassurance" to describe China–United States relations suggestive of the idea that the United States should reassure China about welcoming China's rise while China would reassure the US and its neighbors that it would not conflict with their interests.
Israel-U.S. strategic dialogue
In October 2010, Steinberg met with Israel’s Deputy Foreign Minister, Danny Ayalon, in Washington, D.C., where they discussed how to improve regional security and stability through boosting and growing the already strong cooperation between their two nations. During the talks, both delegates expressed their commitment to a lasting peace between Israel and its neighbors and their grave concern regarding Iran’s continued non-compliance with its international obligations through pursuit of a military nuclear program. The following spring, they met in Jerusalem where they again took advantage of the opportunity to work together to identify and strategize against the threats both countries face including the rapidly changing political situation in the Middle East and the ongoing Iranian nuclear program.
In March 2011, Steinberg was named Dean of the Maxwell School of Citizenship and Public Affairs at Syracuse University. On July 28, 2011, he resigned as Deputy Secretary of State and assumed his new position. His term as dean ended in 2016.
He is married to Sherburne B. Abbott, vice president for sustainability initiatives and University Professor of Sustainability Science and Policy at Syracuse University. They have two daughters: Jenna and Emma.